Legal origin and financial development: A propensity score matching analysis

Glauco De Vita, Chengchun Li, Yun Luo

    Research output: Contribution to journalArticlepeer-review

    6 Citations (Scopus)
    61 Downloads (Pure)


    We revisit the impact of legal origin on financial development using propensity score matching and a new financial development index on a sample of 178 countries over 1980–2016. German civil law countries are found to have the strongest positive impact on financial development. English common law countries follow. French and Scandinavian civil law countries have a negative impact on financial development while Socialist legal origin records no significant effect. When decomposing the measure of financial development into financial markets and financial institutions' development, we find that German civil law promotes both while English common law promotes only financial institutions development.

    Original languageEnglish
    Article numberIJFE2167
    Pages (from-to)535-553
    Number of pages19
    JournalInternational Journal of Finance and Economics
    Issue number1
    Early online date9 Oct 2020
    Publication statusE-pub ahead of print - 9 Oct 2020

    Bibliographical note

    This is the peer reviewed version of the following article: [De Vita, G, Li, C, Luo, Y. Legal origin and financial development: A propensity score matching analysis. Int J Fin Econ. 2022; 27: 535– 553.], which has been published in final form at [10.1002/ijfe.2167]. This article may be used for non-commercial purposes in accordance with Wiley Terms and Conditions for Use of Self-Archived Versions. This article may not be enhanced, enriched or otherwise transformed into a derivative work, without express permission from Wiley or by statutory rights under applicable legislation. Copyright notices must not be removed, obscured or modified. The article must be linked to Wiley’s version of record on Wiley Online Library and any embedding, framing or otherwise making available the article or pages thereof by third parties from platforms, services and websites other than Wiley Online Library must be prohibited.

    This document is the author’s post-print version, incorporating any revisions agreed during the peer-review process. Some differences between the published version and this version may remain and you are advised to consult the published version if you wish to cite from it.


    • financial development
    • financial institutions
    • financial markets
    • legal origin
    • propensity score matching

    ASJC Scopus subject areas

    • Accounting
    • Finance
    • Economics and Econometrics


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